Hi All,

This question can be solved by TESTing THE ANSWERS.

We're given the pay rate of two different salespeople who sell cars:

1) A commission of $ 200 plus 4 percent of $ 1,000 less than the car’s final sale price.

2) A straight commission of 6 percent of the car’s final sale price.

We're asked for the final sale price of a car if both salespeople would earn the SAME commission for selling it?

Let's TEST Answer B: $6,000

1st salesperson = $200 + .04(6,000 - 1,000) = $200 + .04(5,000) = $200 + $200 = $400

2nd salesperson = .06(6,000) = $360

These totals are NOT the same, so we can eliminate B. Looking at the two pay 'formulas', we can see that the 2nd salesperson will make more money than the 1st when the price of the car increases to a significant level, so we need a price that is HIGHER than $6,000. Since the difference in pay is relatively small in Answer B, we're likely looking for a number that is fairly close to $6,000 though...

Let's TEST Answer C: $8,000

1st salesperson = $200 + .04(8,000 - 1,000) = $200 + .04(7,000) = $200 + $280 = $480

2nd salesperson = .06(8,000) = $480

These totals are the SAME, so this must be the answer.

Final Answer:

GMAT assassins aren't born, they're made,

Rich

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